Gold's recent market movement is no simple matter. Reports indicate that as gold prices continue to rise and central banks around the world increase their gold reserves, gold is now very likely to surpass US Treasuries and become the largest reserve asset held by overseas government departments of the United States.

The logic behind this shift is not hard to understand—while the surge in gold prices is one aspect, more importantly, central banks worldwide are showing unprecedented enthusiasm for gold. Under the dual pressures of geopolitical uncertainty and fluctuations in US Treasury yields, gold, as a traditional safe-haven asset, has regained favor among major central banks.

What does this shift mean for the overall asset allocation landscape? It is worth paying attention to. Changes in the ranking of traditional reserve assets often reflect a new risk assessment by global central banks.